Operation

When a bank has trouble assets, asset Management the Bank of England urges him to solve with new contributions from previous partners or new ones. In the case of the bank in question can not solve the problem, the Fund Management Committee (composed of 4 representatives of the Bank and the Bank of England 4, convenes an extraordinary shareholders for a capital reduction and proceed to further enlargement. If such approval is not obtained, the entity will follow the legal process of dissolution, the bankruptcy or insolvency and the Fund meets the amount of deposits up to 15,000 euros (20,000 euros from the year 2000, 100,000 euros from 10 October 2008) per depositor. If successful approval, subscribers are not required, and the Commission believes that the salvation of the organization is viable, the Fund supports all or part of the capital, began work necessary for the reorganization of it and tries to return to the private sector entity auction restricted. We have strengthened the possibility of allowing the Fund to enable the passing of the State Bank of insolvencies concerned, assuming loss, loans, guarantees and acquire Ernst assets, provided to help prevent further damage and in line with the objectives of reorganization and solvency of the banking system that inspired the creation and operation of the Fund. The legislation has been drafted by the Royal Decree 2606/1996 of 20 December of Deposit Guarantee Fund of credit.